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SOVA2 [1]
3 years ago
13

What is privatization and why have some governments used it?

History
1 answer:
MrMuchimi3 years ago
8 0

Answer:

<u>Privatization:</u> The transfer of ownership, property or business from the government to the private sector is termed privatization. The government ceases to be the owner of the entity or business. The process in which a publicly-traded company is taken over by a few people.

<u>Why have some governments used it?</u>

There are numerous reasons why governments turn to privatization. Cost reduction is one motivation for privatization. The desire to transfer risk from the public sector to the private sector can lead to privatization. Another rationale for privatization could be as a new source of revenue.

I hoped this helped. Have a great day!!

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